The Binance update comes as certain members of the cryptocurrency ecosystem fight to keep an Ethereum that is Proof-of-Work after “the Merge.”
Binance might list forks of Ethereum
The largest cryptocurrency exchange in the world will support Ethereum’s historic “Merge” event and may even list some of the forked versions of the platform’s currencies.
In a Wednesday blog post, Binance said it was “closely monitoring” the Merge and would support it on launch. The exchange stated that it will “assess the support for distribution and withdrawal of the forked tokens,” adding that the incident might potentially result in the creation of certain forked Ethereum tokens. In other words, Binance hasn’t ruled out listing additional ETH-related forked coins, but it has made it clear that it intends to offer the Proof-of-Stake version of ETH when the important update launches.
One of the major crypto events in recent years is largely regarded to have been the so-called “Merge” update to Ethereum. The most popular smart contract blockchain will “merge” its Proof-of-Stake consensus layer with its present Proof-of-Work execution layer in order to transition the network to a new consensus mechanism that depends on validators rather than miners.
Because the network won’t have to pay miners to add new blocks to the chain, the upgrade, which is presently in testing and is scheduled to launch in mid-September, is anticipated to lower Ethereum’s energy consumption by 99.9% and cut down on ETH issuance by roughly 90%.
Support for Proof-of-Work Fork
Although the Merge has received strong support from the Ethereum community, some have expressed concern about how it may affect miners. As a result, a plan to fork the Ethereum blockchain in order to maintain a Proof-of-Work network has received support from some well-known figures in the cryptocurrency world, including TRON founder Justin Sun and veteran miner Chandler Gou. Because new ETH tokens would probably be produced if a fork occurred, Binance has stated that it will evaluate any prospective new coins.
Following yesterday’s Merge, USDC and USDT stablecoin issuers Circle and Tether declared that they would only support Proof-of-Stake Ethereum. However, the Proof-of-Work Ethereum plans create a potentially profitable opportunity for exchanges in the business of making relevant assets available for trading. Even though Sun-backed Poloniex announced earlier this week that it would support two hypothetical hardfork currencies, none of the big exchanges have yet committed to listing any new tokens.
Early on Thursday, Ethereum is scheduled to finish its final Merge testnet. Subsequently, a date for the Merge on the mainnet will be decided.
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